The Potency of Cash Waqf for the The Simulation Result

day rupiah Cummulative_Cash_Waqf_Fund 1 Control_Function 2 5.000 10.000 15.000 5e14 1e15 1 2 1 2 Figure 3c The Simulation Result long term day gold standard kg Convert_to_gold 1 Total_cash_waqf_in_gold 2 5.000 15.000 5.000.000 10.000.000 1 2 1 2 Figure 3d The Simulation Result long term da rupiah Control_Function 1 Cummulative_Cash 2 20 40 60 80 100 1e9 2e9 3e9 4e9 5e9 1 2 1 2 1 2 1 2 1 2 da gold s tandard kg Total_cash_waq d 1 Convert_to_gol 2 20 40 60 80100 10 20 30 40 50 1 2 1 2 1 2 1 2 1 2 Figure 3e. The Simulation Result short term if any of mismanagements or dishonesty occur day ru p ia h Control_Function 1 Cummulative_Cash_Waqf_ Fund 2 2.000 6.000 10.000 2e13 4e13 6e13 1 2 1 2 1 2 1 2 day g ol d s tandar d k g Total_cash_waqf_in_gold 1 Convert_to_gold 2 2.000 10.000 300.000 600.000 1 2 1 2 1 2 1 2 Figure 3f. The Simulation Result long term if any of mismanagements or dishonesty occur

8. The Potency of Cash Waqf for the

Poverty Alleviation Programs It can be concluded from the system that the larger the amount of cash waqf collected, the larger the amount of fund can be invested in highly cost-effective profit sharing-based portfolios, and the larger the amount of return can be distributed to poor people. The more fund allocated to finance microbusiness, the sooner poverty in Indonesia can be alleviated. see Figure 4a. The waqif and public can control or monitor the cash flow of cash waqf investment. If mismanagement and dishonesty occurred, the simulation result could demonstrate the deviation. see figure 3e-f The Potency of Cash Waqf for The Poverty Alleviation Pra_welfare_people aleviation welfare the_rich birth_rate2 birth_rate death_rate2 Birth_rate3 death_rate3 Indonesian_population death_rate Profit_of_Cash_Waqf_Investment Daily_needs Multiplier_Effects the_poor Multiplier_effect Invest_to_microfinance Average_of_Microfinacing Profits_of_CW_Investment_ the_poor alleviation_1 Average_Period_to_become_prawelfare The_poor_decrease The_poor_reducing Microcredit_for_a_poo lifetime_expectancy Population_growth the_welfare_increase Pra_welfare_reducing Average_period_to_become_welfare Average_of_Microfinacing Figure 4b Causal Diagram of The Potency of Cash Waqf Simulation using Powersim Profits of Cash Waqf Investment Distribution Enter_to_pra_welfare Profit_of_Microfinance Living_needs Healthy_needs Education_needs Rehabilitation_needs Infrastructure_needs Disaster_needs Education_cost Family_Rehbiittion_Cost Natural_Disaster_Cost Infstructure_Cost Cost_1 Cost_2 Cost_4 Cost_5 Cost_6 Needs_ratio_4 Needs__ratio_5 Needs_ratio_6 needs_rate_1 needs_rate_2 needs_rate_3 needs_rate_4 needs_rate_5 needs_rate_6 allocation_ratio_2 allocation_ratio_3 allocation_ratio_4 allocation_ratio_5 allocation_rate_6 available_fund_for_living available_fund_for_healthy available_fund_for_education available_fund_for_rehbltation available_fund_for_disaster available_fund_for_infrastrctr available_rate_1 available_rate_2 available_rate_3 available_rate_4 available_rate_5 available_rate_6 poor Living_cost Healthy_cost Needs_ratio_1 Needs__ratio_2 Needs_ratio_3 Enter_to_pra_welfare Profit_of_Cash_Waqf_Investmen Cost_3 ment Profit_of_Cash_Waqf_Investment Profit_of_Cash_Waqf_Investment Inflation Inflation Enter_to_pra_welfare Healthy_cost Infstructure_Cost Living_cost Natural_Disaster_Cost Daily_needs Education_cost Family_Rehbiittion_Cost Total_available_fund_for_poor Profit_of_Glb_Fund_Mgt Profit_of_Islamic_Finance Profit_of_Direct_Investment Pra_welfare_people the_poor allocation_ratio_1 Figure 4b Causal Diagram of Simulation using Powersim

9. The Simulation Result

Since there has been no similar study preceding the research, some assumption were applied. The ability of five national TV corporations RCTI, SCTV, Indosiar, MetroTV and Lativi to collect donation amounting 3 billions Rp in two night in 2003 was used as an 6 assumption basis of amount of fund could be gathered by cash waqf management institution. It was then assumed that the cash waqf institution could obtain 20 millions Rupiah a day in form of cash waqf from various components of Indonesian people. The study also assumed that the gathered fund would grow 25 annually and it would be invested in Islamic financial products with profit sharing- based various rate of return. Using the above assumption and data supplied by Biro Pusat Statistik National Beaurau for Statistics, BKKBN National Coordinating Agency for Family Planning and syariah financial institution in Indonesia, the computer-based data process resulted. Such an amount of fund is expected to be available for the poverty alleviation efforts in Indonesia, especially through microfinance distribution program. If this plan can be implemented smoothly and if those assisted micro enterprises can get well run maximum of 8 years after being financed, it will take approximately 12500 days 35 years to eliminate poverty and 22400 days 63 years to increase quality of live for Indonesian population. see figure 5a-b Poor people, in this study, are those with very low quality of life. In other words, poor people are not only those who cannot feed once a day, but also those who cannot afford proper health and education services. Time the_poor 1 the_poor 2 Pra_welfare_people 3 Pra_welfare_people 4 the_rich 5 the_rich 6 Indonesian_populatio 7 Indonesian_populatio 8 5,000 10,000 15,000 20,000 25,000 30,000 50,000,000 100,000,000 150,000,000 200,000,000 1 2 3 4 5 6 7 8 1 2 3 4 5 6 7 8 1 2 3 4 5 6 7 8 1 2 3 4 5 6 7 8 1 2 3 4 5 6 7 8 Figure 6a. Simulation Result based on Rp 50 million in a day compare with Rp 20 million in a day

10. Conclusions